Chapter 8Federal Associations

Section § 8500

Explanation

This law states that federal associations and their members, including those holding various types of accounts, have the same rights, privileges, and protections as state-organized associations in California. It also clarifies that this section adds to any other state laws specifically mentioning federal associations and their members or stockholders.

(a)CA Financial Code § 8500(a) Every federal association and the holders of stock, shares, share accounts, savings accounts, and certificate accounts issued by any federal association have all the rights, powers, and privileges, and are entitled to the same exemptions and immunities granted, respectively, to associations organized under the laws of this state and to the holders of their stock, membership accounts, and savings accounts.
(b)CA Financial Code § 8500(b) This section is in addition and supplemental to any provision that, by specific reference, is applicable to federal associations and their members or stockholders.
federal associations stockholders rights share accounts savings accounts certificate accounts state-organized associations exemptions immunities California financial rights account holders privileges supplemental provision
(Repealed and added by Stats. 1987, Ch. 1162, Sec. 16. Effective September 26, 1987.)

Section § 8501

Explanation

This law section states that directors of a federal association in California won't have to pay for damages to the organization, its stockholders, or members as long as those members agree to a resolution limiting such liability. However, this resolution won't protect directors from being held accountable for serious misconduct as specified in another part of the law.

No director of a federal association shall be liable for monetary damages to the federal association, its stockholders or members, based upon the laws of this state, to the extent that the stockholders, or in case of a mutual federal association the members of the federal association, adopt a resolution limiting liability. The resolution shall not eliminate or limit the liability of directors for any acts or omissions or transactions from which directors of a corporation may not be relieved of liability as set forth in the exception to paragraph (10) of Section 204 of the Corporations Code.
director liability federal association monetary damages liability resolution stockholders mutual federal association member resolution limit liability corporate misconduct exception Corporations Code director protection California liability law corporate governance director omissions
(Added by Stats. 1987, Ch. 730, Sec. 21.)